Divorcing at any age can be difficult both emotionally and financially. However, getting a divorce late in life can especially take a toll on an individual. Late-life divorces in New Jersey and elsewhere are occurring at a rapid rate today, and unfortunately, many older people's retirement plans are being destroyed in the process.
From 1990 to 2010, the rate of divorce among people 50 years old or older doubled. In fact, split-ups late in life now make up a quarter of divorces. These divorces can cause serious harm even to those who have engaged in the most conscientious financial planning.
A majority of couples who make retirement plans assume that they will still be living with each other. When this does not happen, having to divide their wealth on top of doubling their living costs is what causes both parties to suffer financially in their later years. It may cost as much as 30 to 40 percent more for the two individuals to live separately versus together.
Divorce can be the biggest financial transaction in a person's life in the state of New Jersey. Thus, it is understandable for people to feel overwhelmed when going through it, and in these situations, people tend to make rash decisions. However, failure to approach matters such as asset division and property distribution in a logical manner can cost a person financially in both the short term and the long term. With proper legal guidance, individuals can pursue outcomes that are in their best interests considering the circumstances surrounding their unique cases.
Source: chicagotribune.com, "How to tackle finances during divorce", Martha M. Hamilton, Dec. 2, 2016